Abbott to cut 700 jobs as Promus sales decline

Despite reporting healthy profits this week, Abbott Labs ($ABT) is laying off 700 people in the U.S. and Puerto Rico as part of a restructuring effort. Roughly 200 positions will be eliminated at its Lake County, IL, campus, as the company discontinues some of its mature products in the hospital and laboratory diagnostics division, the Chicago Tribune notes.

The company, which saw net earnings of about $1.62 billion in Q4, also is making cuts in its stent-manufacturing business, a move that will affect workers in California, company spokeswoman Adelle Infante said, according to the Tribune.

Prior to the layoffs, the Temecula, CA plant employed about 3,000 people. The company gave notice to those being laid off on Wednesday, said company spokesman Jonathon Hamilton, the North County Times reports.

Although Abbott recorded worldwide sales of $10.4 billion--an increase of 4.1%--it has witnessed declining revenue from its Promus stent, which is promoted and sold by Boston Scientific, during the last quarter. The two companies' agreement for the stent is up this year, the Tribune notes.

Word of the layoffs comes months after the company announced it will split into two publicly traded companies, one in diversified medical products and the other in research-based pharmaceuticals. The separation is expected to be wrapped up by the end of the year.

- see the Abbott earnings release
- get more from the Chicago Tribune
- see the North County Times story

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